(1) Where the offer is rejected under regulation 16 or is not successful as per regulation 17, the offer shall be deemed to have failed and no equity shares shall be acquired pursuant to such offer.
(2) Where the offer fails –
(a) the equity shares deposited or pledged by a shareholder under paragraphs 7 or 9 of Schedule II shall be returned or released to him within ten working days from the end of the bidding period;
67[Provided that the acquirer shall not be required to return the shares if the offer is made pursuant to regulation 5A of Securities and 62 Inserted by the SEBI (Delisting of Equity Shares) (Second Amendment) Regulations, 2018, w.e.f. 14.11.2018.
63 Substituted for the word "eight" by the SEBI (Delisting of Equity shares) (Amendment) Regulations 2015, w.e.f. 24-03-2015 64 Inserted by the SEBI (Delisting of Equity Shares) (Second Amendment) Regulations, 2018, w.e.f. 14.11.2018.
65 Substituted for the word "promoter" by the SEBI (Delisting of Equity shares) (Amendment) Regulations 2015, w.e.f. 24-03-2015 66 Omitted by the SEBI (Delisting of Equity Shares) (Second Amendment) Regulations, 2018, w.e.f. 14.11.2018.
Prior to the omission, the clause read as follows:
“(iii) rejection under regulation 16 of the final price discovered under Schedule II, by the promoters.” 67 Inserted by the SEBI (Delisting of Equity shares) (Amendment) Regulations 2015, w.e.f. 24-03-2015.
18 Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.]
(b) no final application shall be made to the exchange for delisting of the equity shares; and
(c) the escrow account opened under regulation 11 shall be closed.
Payment of consideration and return of equity shares